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Securities offered through Registered Representatives of NFP Securities, Inc. (NFPSI), Member FINRA/SIPC. Investment Advisory Services offered through Investment Advisory Representatives of NFPSI.
Snider Fuller & Associates is a member of PartnersFinancial, an affiliate of NFPSI. Snider Fuller & Associates and NFPSI are not affiliated.
NFP Securities, Inc. does not provide tax or legal advice. Any decisions whether to implement these ideas should be made by the client in consultation with professional financial, tax, and legal counsel. This site is published for residents of the
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A profit sharing plan is a plan that allows the flexibility of making tax-deferred contributions to employees in any given year or not. It is great for unpredictable or changeable cash flows since there is no promised benefit. 401(k) provisions allow employees to contribute from their pay before federal and state taxes. Typically the employer matches a portion of the employee's deferral.
Safe Harbor provisions can be added to an existing plan to allow the owners and key employees to maximize their personal contributions. By making a "promised" contribution, either by a flat amount or a match, and by immediately vesting that contribution 100%, an employer can reduce or avoid cumbersome testing that limits his/her ability to maximize their own contributions for retirements. Each year, this decision can be revisited as changes occur in the business structure or finances.
ERISA (Employee Retirement Income Securities Act) 403(b) Plans are employer-sponsored plans established by non-profit organizations. The law now allows non-profits to establish 401(k) plans. The 403(b) plan requires the same required document, government reporting and employee notifications as do 401(k)s, however, there are fewer tests. A main disadvantage for some employers is that most 403(b)'s are fully vested immediately and not all carriers offer 403(b)'s. 
A SEP, or Simplified Employee Pension, is a retirement plan frequently used by self-employed individuals or sole proprietorships, partnerships or S or C corporations. A SEP allows self-employed individuals to make contributions toward their own and employees' individual retirement accounts without dealing with more complex types of retirement plans. Like with other retirement plans and accounts investment earnings are tax-deferred until they are withdrawn and the contributions are 100% tax deductible to the employer. Employees may not contribute to this type of plan. 
A SIMPLE (Savings Incentive Match Plan for Employees) plan is easy to administer and was designed for sole proprietors and small businesses, with fewer than 100 employees, to offer a tax-advantaged company sponsored retirement plan. SIMPLE plans are funded by employer contributions, but they can also be funded by employee salary deferrals. Like with other retirement plans and accounts, earnings grow income tax free until funds are withdrawn, which is usually at retirement. At that time, the amounts withdrawn are taxed as ordinary income.
Deferred compensation is past or future income that is paid at a later date, usually at the end of an employee's service. A deferred compensation plan, or 457 plan, is an arrangement whereby an employee or owner defers some potion of their current income until a specified future date. Wages earned in one period are actually paid at a later date. Life insurance premiums can be paid through a deferred compensation plan at this time. The life insurance policy accumulates a cash value which can be withdrawn by the employee at retirement. If the employee, or insured, dies before retirement, then their designated beneficiary receives the death benefit.
The 412(i) Defined Benefit Plan is a tax-qualified plan that must be funded with a combination of life insurance and annuities, or annuities alone. The guarantees of a 412(i) plan are based on the ability of the life insurance company and annuity contracts that fund it to pay claims. For this reason, it is necessary to choose a reputable company with superior financial history and strength to guarantee these contracts. 412(i) plans are funded by the employer annually with specific amounts. These payments are adjusted each year by interest accrued in the life insurance policy or annuity.